REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, City Manager
VIA: Jennifer Villasenor, Director of Community Development
PREPARED BY: Celeste Coggins, Senior Management Analyst
Subject:
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Approve and authorize execution of a reimbursement agreement with Socal Holdings, LLC in the amount of $291,420 to fund the preparation of an Environmental Impact Report (EIR) for the Palm/Goldenwest Specific Plan Amendment by LSA Associates; approve an increase in the Community Development Department’s Professional Services listing authority by $291,420 and appropriate funds to be fully reimbursed
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Statement of Issue:
Transmitted for your consideration is a reimbursement agreement with Socal Holdings, LLC to fund the EIR and associated technical analyses for an amendment to the Palm/Goldenwest Specific Plan.
Financial Impact:
An appropriation of $291,420 from the General Fund to the Community Development Department Professional Services Account 10060201.69365 is required. These funds will be offset by the attached reimbursement agreement with the property owner, Socal Holdings, LLC.
Recommended Action:
recommendation
A) Approve and authorize the Mayor and City Clerk to execute a Reimbursement Agreement Between the City of Huntington Beach and Socal Holdings, LLC for Costs Incurred for the preparation of an Environmental Impact Report for the Palm/Goldenwest Specific Plan Amendment in the amount of $291,420 as prepared by the City Attorney (Attachment No. 1); and
B) Approve an increase in the Community Development Department’s professional service listing authority by $291,420 for the preparation of the Environmental Impact Report for the Palm/Goldenwest Specific Plan Amendment pursuant to Administrative Regulation Number 228, Section 7.1; and
C) Appropriate funds as revenues are received in the amount of $291,420 from the General Fund to the Community Development Department Professional Services Account 10060201.69365 for the Professional Services Contract between the City and LSA Associates, Inc., which is funded by a reimbursement agreement.
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Alternative Action(s):
The City Council may make the following alternative motions:
A. Deny the reimbursement agreement between the City and Socal Holdings, LLC.
B. Continue the item and direct staff accordingly.
Analysis:
Socal Holdings, LLC, recently submitted applications to amend the Palm/Goldenwest Specific Plan, which was originally adopted by the City in February, 2000. Socal Holdings, LLC owns approximately 94 acres of property within the Palm/Goldenwest Specific Plan boundary located along Pacific Coast Highway between Goldenwest Street and Seapoint Street. The submittal consists of four applications (Local Coastal Amendment (LCPA-2025-001), General Plan Amendment (GPA-2025-001), Zoning Text Amendment (ZTA-2025-002), and Environmental Assessment (EA-2025-002)) to change the current adopted land use plan and development standards for the future redevelopment of an existing oil production facility located within the Specific Plan area. The proposed land use plan would provide for a mix of uses including residential, visitor-serving commercial, and open space uses. The proposed applications require environmental review in accordance with the California Environmental Quality Act (CEQA). Based on the scope of the proposed amendments, an Environmental Impact Report (EIR) is required to analyze the potential environmental impacts associated with the project.
Preparation of the EIR for this project exceeds the capacity of full-time staff and requires technical expertise in several environmental topic areas. As such, an environmental consultant firm specializing in CEQA is necessary to complete the work. After requesting proposals from the list of existing CEQA consultants contracted by the City, LSA Associates was selected.
An on-call professional services contract exists between the City and LSA Associates (Attachment No. 2) for completion of the CEQA document. This contract was approved and executed on April 5, 2022. Funding for the work associated with preparation of the EIR for the proposed project will be paid for by Socal Holdings, LLC, as required through the requested reimbursement agreement.
Environmental Status:
This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. The proposed amendments to the Palm Goldenwest Specific Plan will be analyzed within an EIR to be prepared pursuant to the California Environmental Quality Act (CEQA) upon approval of the subject reimbursement agreement.
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1. Reimbursement Agreement Between the City of Huntington Beach and Socal Holdings, LLC for costs incurred for the preparation of an Environmental Impact Report for the Palm/Goldenwest Specific Plan Amendment.
2. Executed Professional Services Contract Between the City of Huntington Beach and LSA Associates for On-Call Environmental Services and Amendment No. 1